Fitch

Moody's

S&P

Supporting Factors

Major commodity exporter

weak

Factors of Weakness

Dependence on the eurozone

The Norwegian krone is the currency officially used in Norway, while it also used in neighboring countries near the border with Norway. The currency was introduced in 1875 and allowed to float freely in 1992. The exchange rate of the currency depends on prices for crude oil and interest rates. Norway is exporting oil and performance of the krone depends on this commodity.

The Norges Bank (Norway’s central bank) was one of the central banks that were conducting policy meetings today and decided to keep their monetary policies unchanged. The Norwegian krone (as well as most other currencies) traded below the opening level against the US dollar after the meeting.

The Norges Bank was yet another central bank to hold policy meeting today. The bank made a decision to cut its key interest rate. Surprisingly enough, the Norwegian krone gained against its major peers despite the news.

The Norwegian krone remained weak today after Friday’s decision of Norway’s central bank to reduce its key policy rate. The bank predicted that borrowing costs will remain unchanged for the next two years.